Medtox Scientific to Be Bought for $241M
New Brighton-based Medtox Scientific, Inc., has agreed to be purchased by Burlington, North Carolina-based Laboratory Corporation of America Holdings (LabCorp) in a transaction that’s valued at $241 million, the companies said Monday.
Under the terms of the agreement, Medtox shareholders would receive $27 per share in cash.
On news of the agreement, Medtox shares were trading up 35 percent at $26.66 mid-day Monday.
Medtox provides forensic and clinical laboratory services to corporations, pharmaceutical companies, and health care organizations. It also manufactures and distributes diagnostic drug-screening devices. Its 2011 revenue totaled $108.1 million—up 11.4 percent from 2010.
LabCorp, meanwhile, provides clinical testing technology and services. It offers 4,000 tests ranging from routine blood analyses to reproductive genetics, and it serves more than 220,000 clients. LabCorp’s 2011 revenue totaled $5.5 billion, and it employs more than 31,000 worldwide.
The transaction is subject to customary closing conditions, and the companies expect the deal to close in the third quarter of this year. A LabCorp spokesman did not respond to questions about whether Medtox’s Twin Cities office will remain open and whether its roughly 670 employees will be retained post-acquisition.
“This transaction highlights the fundamental value of the Medtox brand, the talent and expertise of our team, and the quality of our products and testing services,” Medtox Chairman and CEO Dick Braun said in a statement. “As part of LabCorp, with its substantial resources and infrastructure, we expect to accelerate Medtox’s profitable growth and provide a stable and sustainable environment for our employees and clients.”
Medtox is among Minnesota’s 65-largest public companies based on revenue.